We examine whether or not professional traders recognize transaction costs when making trade decisions. In both single and multi-period settings, professional traders are far more reluctant to realize a gross loss rather than an actual loss (net of transaction costs). The tendency to ignore...

We study how institutional investors utilize potentially biased information by analyzing the effect of IPO underwriters' earnings forecasts on investors' bidding behaviors in Chinese IPO auctions. Despite the presence of upward biases in underwriters' earnings forecasts, we nd that investors'...

The directional distance function (DDF) framework has been widely used to estimate the marginal abatement cost (MAC) of CO2 emissions to support decision-making in environmental sustainability and climate change issues. In the use of DDF, an important task is mapping evaluated entities towards a...

This paper introduces a multi-layer network approach to explore risk contagions in a sample of top energy firms in the world. Large energy companies play a very important role in the international energy market. Mapping their responses to different types of shocks provides profound implications...

We examine factors that influence U.S. equity trader choice between dark and lit markets. Marketable orders executed in the dark are larger in size. They also receive favorable prices and incur minimal price impact. However, dark orders take longer to execute and have lower fill rates. Traders...

We examine the impact of political uncertainty on firms' payout policy. Using a large international sample across 35 countries over the period from year 1990 to 2008, we find that past dividend payers are more likely to terminate dividends and that non-payers are less likely to initiate...